Brummer & Partners, the $12.8bn Stockholm-based manager, suffered sweeping losses in its multi-strategy fund amid October’s dramatic sell-off.
Brummer Multi-Strategy (BMS), its $.4.4bn flagship fund of funds co-managed by Patrik Brummer and Mikael Spångberg, fell 4.0% in its Swedish krona denominated class during the month, leaving it down 0.8% on a year-to-date basis. Its dollar share class lost 3.0%, though it remains up 1.5% for the year.
Trend-following specialist Lynx, the largest underlying fund in BMS, fell an estimated 3.6%, as sharp reversals across commodities markets including power, oil, gold, and silver took their toll on CTA performance. Lynx has now dropped 4.2% over the 10-month period to the end of October. Florin Court, another systematic strategy, slipped 4.2% in October.
Fundamental long/short strategy Manticore suffered the biggest monthly slide among Brummer’s range, plummeting 14.1%.
Losses were driven both by market exposure and stock selection, chiming with more widespread challenges facing long/short hedge funds this year. Most equity markets are now in negative territory for the year, and in Europe are down by between 3% and 12%.
On the positive side, interest rate and macro-focused Nectar (0.5%) – the second-oldest fund on the Brummer platform – notched up small gains in bond markets, as Observatory (0.4%) took profits from relative value credit positions.
Brummer, which launched its first hedge fund in 1996, takes minority stakes in the management companies of firms on its platform and invests in their funds via the BMS fund.
Brummer funds suffer October reversal on EuroHedge.